Save Article

Taiwan Chip Makers Lose
A Supply-Demand Gamble

TAIPEI, Taiwan -- During the past year, Taiwan's high-tech manufacturers placed a bet that global demand for semiconductor chips would roar out of a prolonged slump by now. They bet wrong.

The result: Some of this island's star electronics companies are bleeding money. While more-established rivals in Japan and South Korea have been curbing production, Taiwan's memory-chip makers face a murky future, chasing the ever-receding mirage...